Appeal to the tax tribunal

Overview

You can appeal to the First-tier Tribunal (Tax) if you want to challenge some decisions by HM Revenue and Customs (HMRC), Border Force or the National Crime Agency (NCA).

The tribunal is independent of government and will listen to both sides of the argument before making a decision.

Appeal an HMRC decision

You can appeal some decisions about:

• ‘direct tax’, eg Income Tax, PAYE tax, Corporation Tax, Capital Gains Tax, National Insurance contributions, Statutory Sick Pay, Statutory Maternity Pay, Inheritance Tax - you must appeal to HMRC first
• ‘indirect tax’, eg VAT, excise duty, customs duty - you can usually appeal straight to the tribunal

If you can’t pay

You must usually pay what HMRC says you owe upfront. Make a hardship application if you can’t. Appeal to the tribunal if HMRC won’t let you delay payment.

You don’t have to pay upfront if you’re appealing about a penalty.

Appeal about seized goods

You must ask HMRC or Border Force to take your case to the magistrates’ court (this is known as starting ‘condemnation proceedings’) if you think they shouldn’t have taken (or ‘seized’) your goods.

You may be able to appeal to the tribunal if HMRC or Border Force:

• refuse to return your seized goods
• say you need to pay to get your seized goods back
• send you an assessment for duty
• try to charge you a penalty

You must ask HMRC or Border Force to reconsider their decision before you can appeal.

Closure applications

You can apply for a ‘closure notice’ if HMRC open an enquiry to check your tax return for ‘direct tax’ (eg Income Tax, Capital Gains Tax or Corporation Tax) and you want it to be closed.

Read the detailed guidance if you need help.

The tribunal will decide when HMRC should close the enquiry.

You can’t apply for a closure notice if your tax return is being checked for ‘indirect tax’.

Appeal an NCA decision

The National Crime Agency (NCA) can check your tax return instead of HMRC in some cases, eg if they suspect you’ve been laundering money.

You can make an appeal if you don’t agree with the decision by writing to the NCA.

Help you can get

You may want to get help and advice before you appeal.

You can represent yourself or find a lawyer, tax adviser or accountant to help with your appeal.

You can get free advice from:

• Citizens Advice
• TaxAid
• TaxHelp for Older People, if you’re over 60

Appeal to the tribunal

Download and fill in a notice of appeal form (T240). Read the guidance notes if you need help.

Download and fill in application form (T245) if you’re applying for a closure application.

Post or email the form to the tribunal - the contact details are on the form.

Contact the tax tribunal helpline if you have any questions about completing the form. The helpline can’t give you legal advice.

The tribunal will let you know if your appeal form is incomplete or you have no right to appeal.

What happens next

You’ll get a letter from the tribunal explaining what will happen with your case.

The tribunal can decide some appeals after reading the appeal form and other paperwork, but you can ask for a hearing if you’d prefer one.

You’ll usually get at least 14 days’ notice of the date of the hearing. The tribunal will write to you with details of what you need to do. The hearing will be held at your nearest venue.

If you have a hearing

You must usually send copies of all documents relevant to your appeal (eg letters, invoices and accounts) to HM Revenue and Customs (HMRC) when you’re asked to.

HMRC will send you a ‘bundle’ of their documents before the hearing. You must bring this with you to the hearing, unless your case is a ‘Basic’ case - the tribunal will tell you if it is.

You must also bring a witness if your case needs one.

Who’ll be at the hearing

The hearing will normally be held in public. The tribunal is made up of:

• a tribunal panel, including a judge and, in some cases, a tax expert
• a tribunal clerk

You can bring a representative and a friend, family member or colleague.

What happens at the hearing

You’ll have the chance to present your case to the tribunal - someone else can do this for you, eg a lawyer, tax adviser or accountant, friend or family member.

Representatives from the other party will present the case against you.

The tribunal may also ask questions during the hearing.

The tribunal's decision

You’ll usually get the tribunal’s decision:

• in writing if you didn’t have a hearing (the decision will be based on the appeal form and other paperwork)
• in writing within 1 month if you’ve had a ‘Basic’ case - you’ll sometimes get a decision on the day
• in writing within 2 months if you’ve had a ‘Standard’ or ‘Complex’ hearing

If you lose your case

If you lose your case, you may be able to:

• get a decision ‘set aside’
• ask for permission to appeal

Get a decision set aside

You can ask for a decision to be ‘set aside’ (cancelled), but only if you think there was a mistake in the process. The letter you get with the decision will tell you how to do this. Contact Citizens Advice if you need help.

Ask for permission to appeal

You may be able to appeal against the decision if the tribunal made a legal mistake, eg it didn’t:

• apply the law correctly
• fully explain its decision

1. Ask for full written reasons if you haven’t had them already. You must do this within 28 days of the date on the decision notice - the decision notice will tell you how.

2. Ask for permission to appeal - download the appeal form and read the guidance notes. You must do this within 56 days of the date on the full written reasons.

Send the appeal form to:

After you send the form

A judge will decide if you can take your case to a higher tribunal, called the Upper Tribunal (Tax and Chancery). Appeal to the Upper Tribunal if you get permission.

If you’re refused permission to appeal

You can apply to the Upper Tribunal for permission to appeal if the First-tier Tribunal refuses, or only gives you permission to appeal on limited grounds.

Legislation and previous decisions

Read the rules the tribunal must follow and its decisions on previous cases.

Previous decisions

Search the decisions database to see how and why previous decisions have been made.

Legislation

The tribunal must follow the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009.

Read the practice directions and practice statements for more detailed guidance. 

The tribunal was set up by the Tribunals, Courts and Enforcement Act 2007 and Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009.